Following World War II, the British withdrew from their mandate of Palestine, and the UN proposed partitioning the area into Arab and Jewish states, an arrangement rejected by the Arabs. Nonetheless, an Israeli state was declared in 1948 and the Israelis subsequently defeated the Arabs in a series of wars without ending the deep tensions between the two sides. (The territories Israel occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted.) On 25 April 1982, Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, bilateral negotiations were conducted between Israel and Palestinian representatives and Syria to achieve a permanent settlement. Israel and Palestinian officials signed on 13 September 1993 a Declaration of Principles (also known as the "Oslo Accords"), enshrining the idea of a two-state solution to their conflict and guiding an interim period of Palestinian self-rule. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. Progress toward a permanent status agreement with the Palestinians was undermined by Israeli-Palestinian violence between 2001 and February 2005. Israel in 2005 unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council in 2006 froze relations between Israel and the Palestinian Authority (PA). In 2006 Israel engaged in a 34-day conflict with Hizballah in Lebanon in June-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip during December 2008 and January 2009. Direct talks with the Palestinians launched in September 2010 collapsed following the expiration of Israel's 10-month partial settlement construction moratorium in the West Bank. In November 2012, Israel engaged in a seven-day conflict with HAMAS in the Gaza Strip. Prime Minister Binyamin NETANYAHU formed a coalition government in March 2013 following general elections in January 2013. Direct talks with the Palestinians resumed in July 2013 and but were suspended in late April 2014.

Lake Tiberias (Sea of Galilee) is an important freshwater source; the Dead Sea is the second saltiest body of water in the world (after Lake Assal in Djibouti); there are about 355 Israeli civilian sites including about 145 small outpost communities in the West Bank, 41 sites in the Golan Heights, and 32 in East Jerusalem (2010 est.)

note:approximately 341,400 Israeli settlers live in the West Bank (2012); approximately 18,900 Israeli settlers live in the Golan Heights (2012); approximately 196,400 Israeli settlers live in East Jerusalem (2011) (July 2014 est.)

elections:
president largely a ceremonial role and is elected by the Knesset for a seven-year term (one-term limit); election last held 10 June 2014 (next to be held in 2021 but can be called earlier); following legislative elections, the president, in consultation with party leaders, assigns the task of forming a governing coalition to a Knesset member whom he or she determines is most likely to accomplish that task

election results:
Reuven RIVLIN elected president in second round; number of votes in first round - Reuven RIVLIN 44, Meir SHEETRIT 31, Dalia Itzik 28, Dalia Dorner 13, other/invalid 3; number of votes in second round - Reuven RIVLIN 63, Meir SHEETRIT 53, other/invalid 3; RIVLIN will be sworn in 24 July 2014

note:Ehud BARAK and four others on 17 January 2011 split from the Labor Party and formed the Atzmaut (Independence) Party; the Labor Party holds 8 seats in the Knesset and the Independence Party holds 5 seats; Aztmaut did not submit a candidate list for the election on 22 January 2013

judge selection and term of office:
judges selected by the Judicial Selection Committee, made up of all three branches of the government and chaired by the Minister of Justice; judges can serve up to mandatory retirement age of 70

subordinate courts:
district and magistrate courts; national and regional labor courts; special and religious courts

white with a blue hexagram (six-pointed linear star) known as the Magen David (Star of David or Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag; the basic design resembles a traditional Jewish prayer shawl (tallit), which is white with blue stripes; the hexagram as a Jewish symbol dates back to medieval times

note:adopted 2004, unofficial since 1948; used as the anthem of the Zionist movement since 1897; the 1888 arrangement by Samuel COHEN is thought to be based on the Romanian folk song "Carul cu boi" (The Ox Driven Cart)

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

state broadcasting network, operated by the Israel Broadcasting Authority (IBA), broadcasts on 2 channels, one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian, a channel broadcasting Knesset proceedings, and a music channel supervised by a public body; multi-channel satellite and cable TV packages provide access to foreign channels; IBA broadcasts on 8 radio networks with multiple repeaters and Israel Defense Forces Radio broadcasts over multiple stations; about 15 privately owned radio stations; overall more than 100 stations and repeater stations (2008)

18 years of age for compulsory (Jews, Druzes) military service; 17 years of age for voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 36 months for enlisted men, 21 months for enlisted women, 48 months for officers; pilots commit to 9 years service; reserve obligation to age 41-51 (men), 24 (women)
(2013)

West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region